Guarantee Your Equity Partners With FilmCabbage
Updated: Apr 20
(originally published 03/19/19)
There are many advantages for filmmakers to work with FilmCabbage – an industry leading interest rate, low fees, easy to collateralize and many more. But another major benefit is that our platform we can help you completely guarantee your equity partner(s)'s investment in your film project!
For the sake of this example, let's say you have a movie with a $6M budget. Using our 4x multiples to generate your loan, under most circumstances your initial funds would need to be $1.2M. With that we can generate a $4.8M loan and fully cover the $6M budget. All that would be required is for your investor's $1.2M to sit as the Loan Loss Reserve until you spent all of our loan funds, and then their money would be the last funds in to complete the production. But..... if your investor could set aside $1.5M instead of $1.2M, our 4x multiple would become $6M – enough to cover the entire budget. Those initial funds would again need to sit idly as the Loan Loss Reserve, but our loan funds would be enough to produce the entire film. When our funds are fully spent your investor would simply take their $1.5M, plus whatever equity share you have offered them, and never even have to have their funds spent into the film. The investor would never be exposed to any risk of losing their investment if the film was not successful. They would already have their full investment back, plus their equity share. Would being able to guarantee that they simply CANNOT lose money in your film make it easier to secure equity partners? Low interest..... easy collateral..... low fees..... and we can completely absorb 100% of the risk in the project. What are you waiting for? Contact FilmCabbage today for an assessment of your entertainment project.